PALMOILMAGAZINE, JAKARTA – The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), has officially set the Market Index Price (HIP) for biofuel (BBN), specifically biodiesel, at IDR 14,262 per liter for April 2026, excluding transportation costs.
The pricing decision is stipulated in a decree issued by the Director General of New, Renewable Energy and Energy Conservation (EBTKE), under reference number B-936/EK.05/DJE.B/2026, dated March 27, 2026.
According to the official document, the biodiesel HIP is calculated based on the average price of Crude Palm Oil (CPO), in line with prevailing regulations under Indonesia’s mandatory biodiesel program.
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“The conversion rate of Crude Palm Oil (CPO) to biodiesel is set at USD 85 per metric ton, and the Market Index Price (HIP) for biodiesel in April 2026 is determined at IDR 14,262 per liter, excluding transportation costs,” stated the letter signed by Director General Eniya Listiani Dewi, as cited on Thursday (April 2, 2026).
HIP Calculation Based on Global CPO Prices
The April 2026 biodiesel HIP is derived from the average CPO price recorded by KPB during the period of February 25 to March 24, 2026, which stood at IDR 14,958 per kilogram.
The formula used for calculating the HIP is: HIP = (Average KPB CPO price + USD 85/ton) × 870 kg/m³ + transport cost.
Also Read: KPBN CPO Auctions Decline Due to Withdrawals on April 2, 2026, Amid Rising Global Prices
Meanwhile, the exchange rate applied in the calculation refers to the average middle rate of Bank Indonesia during the same period, recorded at IDR 16,877 per USD.
“The calculation of the biodiesel HIP follows the provisions outlined in the Minister of Energy and Mineral Resources regulation regarding the market index price of biofuels blended into diesel fuel,” Eniya noted in the statement.
This policy officially took effect on April 1, 2026, as part of the implementation of Indonesia’s Biodiesel Mandatory Program, in accordance with Presidential Regulation No. 132 of 2024 on Plantation Fund Management.
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The Directorate General of EBTKE reaffirmed its commitment to supporting the national energy transition through sustainable biodiesel policies. The measure is expected to maintain stability in the domestic biodiesel industry while boosting the absorption of local CPO production, including supply from smallholders who play a crucial role in Indonesia’s palm oil value chain. (P2)
